As per sources, NMDC may reduce iron ore lump prices by INR 400/MT and fines prices by INR 200/MT for Oct’15 deliveries.
Market sources say NMDC (National Mineral Development Corporation), India’s largest iron ore producer, may reduce iron ore lump prices by INR 400/MT and fines prices by INR 200/MT for Oct’15 deliveries. However, company officials were not available to confirm the reduction in prices.
The below mentioned reasons might result in price cut:
1. Iron ore dispatches from Chhattisgarh mines have witnessed considerable fall. As per data recorded by SteelMint, NMDC (C.G.) dispatched 219 rakes of iron ore in Sept’15 against 234 rakes in Aug’15 (excluding those of Essar Steel)
2. Sources shared that there is sufficient inventory left with the miner
3. Falling global iron ore prices have reduced the imported lump offers to India. Competitive offers of imported South African lump which are in the range of USD 65-67/MT, CIF West Coast of India for end Oct’15 deliveries can also be considered a reason behind cut in iron ore prices
NMDC Iron Ore Prices
|
Month |
10-150 mm | 10-40 mm, DR CLO | 6-40 mm | Blue Dust/Fines |
| (Fe 65%) | (Fe 67%) | (Fe 65%) |
|
|
| Sept’15 | 2,510 | 3,440 | 2,850 | 1,660 |
| Aug’15 | 2,590 | 3,840 | 2,950 | 1,660 |
| July’15 | 2,590 | 3,840 | 2,950 | 1,660 |
| June’15 | 2,690 | 3,840 | 3,050 | 1,960 |
| May’15 | 2,690 | 3,840 | 3,050 | 1,960 |
| April’15* | 2,690 | 3,840 | 3,050 | 1,960 |
| April’15 | 2,860 | 4,040 | 3,250 | 2,460 |
Prices in INR/MT
*Prices effective from 18-30 Apr’15
Royalty@15% and other taxes extra
Source: SteelMint Research
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